Walmart's Q1 report shows strong e-commerce growth and manageable cost-centric issues

From Yahoo Finance: 2025-05-18 08:47:00

Walmart’s high-margin initiatives are rapidly expanding, and fears of tariffs causing adverse effects are unfounded. Despite a slight drop in reported profits, investors can still confidently hold long-term positions in the retailer’s stock. Q1 results and Q2 guidance led to a minor share decline, but Walmart’s overall performance is stronger than perceived. With $165.61 billion in sales and a 4% year-over-year growth, Walmart’s e-commerce segment is a top driver of growth, with online sales increasing by 22%. The company also saw a 31% rise in ad revenue from Walmart Connect in the U.S. Walmart’s cost-centric issues are manageable, and its decline in net income is due to non-operational factors. Concerns about tariffs are tempered by the likely resolution of trade negotiations between the U.S. and China. Walmart’s economic exposure to tariffs is limited due to its diverse sourcing strategies and strong grocery business. Despite initial market concerns, Walmart remains a solid investment, with significant potential for growth.



Read more at Yahoo Finance: Actually, Walmart’s Q1 Report Was Better Than It Seems